Prime Minister John Key says people are being radicalised in New Zealand and security services are keeping a watch on them.

The family of an Australian man killed by an American drone strike in Yemen says he encountered radical teaching at a Christchurch mosque, which he didn't like, after earlier converting to Islam.

Christopher Havard was killed in November last year along with New Zealander Daryl Jones, who had dual New Zealand-Australian nationality, and three others alleged to have been members of al-Qaeda. The pair had met in Christchurch and had converted to Islam in their twenties.

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